ArcelorMittal reports slower Q3

Luxembourg-based steelmaker ArcelorMittal, which has mills and affiliated operations on several continents, says its 2023 third quarter was impacted by a negative price-cost effect and a 3.7 percent sequential decrease in steel shipments.

The decline in shipments to 13.7 million metric tons also resulted in a decline in operating income to $1.2 billion in this year’s third quarter, down from the $1.9 billion earned in the prior quarter.

While profits were smaller, ArcelorMittal's earnings before interest, taxes, depreciation and amortization (EBITDA) of $136 per metric ton of steel made was well above the longer-term historical averages for the group, which it says reflects the benefits of portfolio optimization and strategic projects.

Looking forward, the company says it remains positive on the medium/long-term steel demand outlook. Its strategic growth projects remain on track and the company’s decarbonization projects are progressing, with ArcelorMittal noting its XCarb products are gaining commercial momentum.

ArcelorMittal CEO Aditya Mittal focused his accompanying comments on a late-October incident at a coal mine in Kazakhstan that claimed the lives of 46 workers. “We mourn their passing and deeply regret the devastation caused to the families of the victims,” he says.

“The only course of action is to ensure that we take a hard look inside our group, identify the gaps that exist and strengthen our safety actions, processes and culture to ensure that we prevent all serious accidents.”

Mittal says the firm is commissioning a comprehensive independent third-party safety audit, the key recommendations of which eventually will be published.